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Written question asked by Grant Shapps (Conservative) on Monday, 1 April 2019, in the House of Commons. It was due for an answer on Thursday, 4 April 2019 (named day). It was answered by Mel Stride (Conservative) on Thursday, 4 April 2019 on behalf of the Treasury.

Aircraft: Imports

Question

To ask the Chancellor of the Exchequer, whether his Department has plans to charge VAT on aircraft imported into other EU states but remain in the UK after the UK has left the EU.

Answer

Treasury Ministers meet regularly with EU counterparts to discuss a wide range of issues.

The free movement of aircraft being used as a means of transport is guaranteed by the Chicago Convention. This allows aircraft to land and take off at airports all over the world without the inconvenience of paying and reclaiming customs duties each time a trip is made. This will continue after the UK exits the EU.

VAT is charged on the sale or import of aircraft at two rates – either 20 % or 0%. The rate applied is dependent on how the aircraft is used. Details of which rate is applicable is available on the government website GOV.UK.

If the UK leaves the EU without a deal imports from the EU will be charged VAT in line with the rules currently applicable to imports from outside the EU. However where the aircraft belong to a person or company established outside the UK they can stay in the UK for at least 6 months using temporary admission. Where the aircraft belongs to a person/company established in the UK the person may be eligible for returned goods relief which allows UK companies and persons to re-import their items into the UK without payment of VAT as long as they fulfil the conditions given in HMRC guidance.

References: Notice 301 Customs special procedures for the Union Customs Code Annex C Temporary Admission , end-use relief

Secondary information

Type
Written question
Reference
239208
Session
2017-19
Grouped for answer
Yes
Subjects
Aircraft Imports VAT Brexit
Link
View this Written question on www.parliament.uk